• Service: Tax, Global Indirect Tax, Global Transfer Pricing Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/4/2014

Slovakia - New withholding rate on payments to non-treaty countries 

April 4: Changes to the income tax law in Slovakia introduce a “qualified” withholding tax rate of 35% for certain payments made by Slovak tax residents to taxpayers of non-treaty partner countries as of 1 March 2014

The “standard” withholding tax rate of 19% (or a reduced rate if provided by an income tax treaty to which Slovakia is a treaty partner) continues to apply.

A new “security tax” rate of 35% was introduced applying to other payments to taxpayers of non-treaty countries. The security tax, however, shall not apply at all to payments remitted to EU and EEA tax residents.

Read a March 2014 report [PDF 152 KB] prepared by the KPMG member firm in Slovakia: Tax and Legal News

The KPMG report also discusses the following topics:

  • Methodical guidelines to the application of transfer pricing methods
  • Guidelines on the interpretation of income tax treaties
  • Electronic filing and signing of financial statements

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